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ReneSola (SOL) Launches $20M Share Repurchase Program

Chinese solar company ReneSola Limited 's SOL board of directors approved a share repurchase program of up to $20 million of its outstanding American depositary shares ("ADS").

Depending on market conditions, share price and other factors, ReneSola can occasionally purchase ADS on the open market or in privately negotiated transactions. The program will run through the next 12 months.

Share buyback is an excellent method of increasing the market value of the remaining outstanding shares of the company and boosting the earnings per share figure.

According to ReneSola's chief executive officer, its growth prospects are not revealed by its current stock price. He is of the opinion that the company is well known for its successful past performance and is shifting its focus to downstream operations and scaling back its module business. The company is gradually expanding its footprint in the Asian, African and European markets.

We believe that the continued share buybacks will increase investors' enthusiasm, while helping the company to maintain its financial position. The launch of the share repurchase program indicates that the company is confident about its steady cash flows.

ReneSola's efforts on expanding its operations into the UK, Japan, China and other countries have been impressive. These initiatives will help the company to win more contracts and boost its future cash inflow. With rising solar demand from its neighboring countries like Japan and India, the company stands to benefit much more than its U.S.-based peers, going forward.

Zacks Rank

ReneSola currently has a Zacks Rank #1 (Strong Buy). JA Solar Holdings Co. Ltd. JASO , SolarEdge Technologies, Inc. SEDG and Vestas Wind Systems A/S VWDRY are other favorably placed stocks in the alternate energy space. While JA Solar and SolarEdge sport a Zacks Rank #1, Vestas Wind carries a Zacks Rank #2 (Buy).

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JA SOLAR HOLDGS (JASO): Free Stock Analysis Report

RENESOLA LT-ADR (SOL): Free Stock Analysis Report

VESTAS WIND SYS (VWDRY): Free Stock Analysis Report

SOLAREDGE TECH (SEDG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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